Question: Can you please provide the explanation, formula and correct answer for the problem above? The answer is $22.72, can you please explain how and why?

Can you please provide the explanation, formula and correct answer for theCan you please provide the explanation, formula and correct answer for the problem above?

The answer is $22.72, can you please explain how and why? I previously submitted this question and received the wrong answer from CHEGG thank you

According to the value-based management model, what is the stock price per share given the following data? Year 1 : Revenue: 750 Fixed Costs: 50 Variable costs: 200 Additional investments in NWC: 3 Additional investments in operating long-term assets: 80 Depreciation: 75 Corporate tax rate: 0.40 WACC COMp: 0.15 Growth rate per year: From year 1 through year 5:0.10 After year 5: 0.05 Market value: Non-operating short-term assets: 50 Non-operating long-term assets: 100 Market value: Short-term debt: 50 Long-term debt: 700 Common Stock: Market price per share: 15 Number of shares: 100 Select one: a. $16.22 b. $22.72

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